Should Investors Test Drive the GM IPO?
GM shares would look undervalued at their expected $26 to $29 a share IPO price.
As part of Morningstar's IPO Research Services, Morningstar auto analyst Dave Whiston recently released a company report and preliminary fair value estimate ahead of the firm's public offering later this month.
Although the "Government Motors" stigma is likely to hang over General Motors Company for years, we think GM's car models have their best quality and design in decades. The company is already a leader in truck models, so a fully competitive lineup, combined with a much smaller cost base, leads us to think that GM will be printing money as vehicle demand recovers.
David Whiston does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.